By George Mwangi
Special to Dow Jones Newswires
NAIROBI--Kenya's inflation rose to an average of 6.7% in the third quarter of 2021 from 6.0% in the second quarter, driven by higher food and fuel prices, the Central Bank of Kenya said late Wednesday.
"Food inflation increased to 10.1% from 7.3% in the previous quarter, driven by a lower supply of food arising from unfavorable weather conditions," the bank said in its quarterly economic review. "Although declining, fuel inflation remained elevated in line with trends in international oil prices."
Fuel inflation declined to 10.8% in the third quarter from 14.2% in the preceding quarter, the bank said.
Nonfood, nonfuel inflation remained low and stable, reflecting muted demand pressures in the economy. It increased marginally to 2.7% from 2.5% in the previous quarter, the bank said, citing figures from the Kenya National Bureau of Statistics.
Kenya relies heavily on imports of petroleum products to meet its energy demand. However, the East African country hopes to start oil production this year, with output of up to 100,000 barrels a day.
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(END) Dow Jones Newswires
01-20-22 0623ET
